May 29, 2001
FUJI UNIVANCE CORPORATION
Outline of Fiscal Year 2000 Accounts
(April 1, 2000 - March 31, 2001)
Consolidated settlement of accounts was an increase in income and profit
(Million Yen) March 2000 March 2001 Difference March 2002 Sales 45,095 45,770 675 1.5% 44,000 Operating profit -142 1,237 1,378 - - Ordinary profit -139 1,245 1,384 - 1,300 Profit for the current term -356 -172 184 - 650
Consolidated settlement of accounts showed increased income and profit with sales increased by 670 million yen compared to the previous term. The major factors for the overall increases and some decreases were as follows:
On a business unit basis, the industrial machinery division received new sales increase of 2 billion yen in transmissions of agricultural machinery. However, 1.4 billion yen decreased sales of the automobile division because manual transmission units decreased by the slow sales growth of recreational vehicles for the Middle East. Also, transfer units decreased due to reduce in production of recreational vehicles caused by a business slump in North America. On an area basis, income was increased in North America as well as in Indonesia due to a production increase in new parts for HONDA and in automotive parts for Japan respectively. There was a slight increase in production in Japan.
1.38 billion yen compared to the previous term increased the operating profit. On a business unit basis, automotive business was increase by 1.18 billion yen and 170 million yen in the industrial machinery business. On an area basis, an increase of 1.08 million yen in Japan, a 230 million yen increase in North America and a 70 million yen in Indonesia. Major factors for the increased profit were a reduction in labor costs from implementing organizational reform in order to gain global competitiveness, and rationalization of the procurement of goods by value analysis and optimizing manufacturing methods. As for domestic subsidiary companies, organizational reform from consolidation and shutdown of plants conducted in the previous term was showing a successful result. As for the North American business, solving the issues at the start of production has stabilized plant operation and there was a production increase in HONDA parts. Production in Indonesia for the Japanese market has increased, making good use of cost merits.
There were extraordinary losses incurred by the implementation of the early retirement program as a reform of the organization to gain global competitiveness. Also, an appropriation of expenses incurred in the shutdown of the Misakubo plant as well as depreciation expenses incurred in switching over to the new severance pay reserves due to the revised law; yet, the profit for the current term increased by 180 million yen compared to the previous term.
Estimates for fiscal year 2002, ending as of March 31, 2002, decrease in income and increase in profit
Sales for year 2002 are expected to yield a 3.9% decrease in income compared to the previous term influenced by global competition. However, the ordinary profit is expected to be about the same as the previous term due to cost reductions in purchased parts through value analysis with a successful result from organization reform. Profit for the current term is expected to greatly increase because no extraordinary loss is required in the organizational reform.
Non-consolidated settlement of accounts was decreased in income and increased in profit
(Million Yen) March 2000 March 2001 Difference March 2002 Sales 43,759 43,412 -347 -0.8% 42,000 Operating profit 138 1,178 １，040 7.5times − Ordinary profit 267 １，327 １，060 4.0times １，250 Profit for the current term -864 82 946 − 600
The sales decreased. Although the sales increased in the industrial machinery division because of increased sales of transmissions for agricultural machinery, the sales of manual transmissions and transfer units decreased influenced by the very low sales increase of recreational vehicles for the Middle East and a business slump in North America.
The ordinary profit increased due to a reduction in labor costs owing to the organizational reform conducted in order to gain global competitiveness and a successful result from the rationalization of purchased parts through value analysis.
940 million yen from the previous year increased profit for the current term. It was red in the previous term because of 860 million yen allocated in the evaluation loss for the stocks of the U.S. subsidiary. Eighty million yen was appropriated for the profit for the current term even though there were extraordinary losses incurred for the additional retirement allowance. The additional allowance was required for the early retirement program, the shutdown of the Misakubo plant and expenses incurred in switching over to the new severance pay reserves due to the revised accounting law.
Estimates for fiscal 2002, ending as of March 31, 2002, decrease in income and increase in profit
Same as the estimates for the consolidated settlement.
Major products in individual business units
Business Classification Major Products Automobile Transmission units, Transfer units, Transmission parts Industrial Machinery Transmission units for industrial machinery and forklifts, Reduction gears for construction machinery Others Machine tools, Washing and administration of distribution receptacles, Sales of miscellaneous goods, Transportation of products
1. Received an order for medium-sized transmission units for Nissan Diesel Motor Co., Ltd.
2. Sales promotion for gear boxes for electric and hybrid vehicles to deal with environmental issues.
3. Received an order for the new type transfer units for full-sized SUVs from Nissan Motor Co., Ltd.
4. Received an order for differential units for buggies from Suzuki Motor Corp. also to be produced by the subsidiary company in the U.S.
5. Received an order for overrunning clutches "DCF" for torque converters.
Industrial machinery division:
1. Sales promotion for gear boxes for agricultural machinery combines.
In the automobile industry, the sales in North America have been decreasing, production has been shifting to overseas and local procurement of parts has been going on. Therefore, Japan economic recovery is severe and cannot be expected. On the other hand, each group of car manufacturers has been developing their strategies by business restructuring. Sourcing drive-line components and units from outside affiliation groups will become more common.
In order to be a globally specialized manufacturer under these circumstances, we commenced implementing the plan, that is, the Misakubo plant will be shut down, optimizing the domestic and overseas manufacturing methods utilizing Fuji Univance, the subsidiary companies in the U.S. and Indonesia. We will steadily progress with the plan, promoting organizational reform to establish a concrete position as a specialized manufacturer, striving for further expansion of business. Furthermore, Fuji Univance as a whole, makes every effort to strengthen competitiveness emphasizing (1) complete incorporation of quality and cost into specialized products and (2) marketing specialized products and timely development of products and engineering. We will keep proposing new products that meet customer needs and demands and conduct further sales expansion activities, aiming at good business results.